Guest Blog Post Written by the fantastic Kevin Lever, of KDL Law.

Following on from our December 2021 Legal Update on the progress of the Leasehold Reform (Ground Rent) Bill the Bill received Royal assent on Tuesday 8 February 2022 and is now law. That said, Regulations will now need to be made by the Secretary of State before most of the provisions of the Act come into force. The Act aims to make leasehold ownership more fair and affordable for leaseholders.

Who does the Act apply to?

All Landlords granting new residential leases in England and Wales will be bound by the terms of the Act.

What are the changes?

Ground rent payable on leasehold properties will be restricted to a peppercorn (i.e. non-monetary) in future leases and rent administration charges are banned in most residential leases with a term longer than 21 years.

Are there any exceptions?

Business leases, statutory lease extensions of both houses and flats, community housing leases and home finance plan leases will not be affected by the Act.

Any surprises?

It had been anticipated that retirement housing (dwellings that can only be occupied by people aged 55 years and older) would be exempt but this is not the case. However, there will be a slight delay in the Acts effect on such property with only retirement housing leases granted after 1 April 2023 being caught by the Act.

Can the Act be applied retrospectively?

No – the Act will not apply to current leases and thus there is no benefit to holders of existing leases with high or more reasonable ground rent obligations. Any agreements for lease entered into prior to the Act being passed will be unaffected and a monetary ground rent may be demanded.  However Landlords need to be careful not to inadvertently surrender and re-grant existing leases under which they may collect ground rents. Ground rent will not be payable under the re-granted lease once the provisions of the Act are in force and the penalties outlined below will apply in this situation.

Will there be a penalty for Landlords who demand ground rent?

Yes – Landlords who seek to demand ground rent after the Act has been passed will be liable to fines of between £500 and £30,000. Additionally, such Landlords will be required to repay any unlawfully collected ground rents plus interest. Leaseholders will be able to apply to the First Tier Tribunal in England or the Leasehold Valuation Tribunal in Wales for a declaration that a prohibited ground rent is replaced with a peppercorn rent.

Enforcement action can be taken against past and current Landlords, as well as people acting on their behalf.

Conclusion

The Act is good news for those purchasing new property or perhaps agreeing new terms with their current landlord but it will of course have absolutely no impact on anyone with an existing lease with a liability to pay ground rent. We have already seen holders of current leases excitedly, but wholly incorrectly, informing us, and our landlord clients, that ground rent demands after the passing of the Act will be “illegal” etc. and that they need not pay.  We assume that there will be, as there always is, a bit of time to pass before those to whom the Act does not assist getting to grips with the fact that they are still liable to pay the rent demanded of them.

 Disclaimer

This legal update is provided free of charge for information purposes only; it does not constitute legal advice and should not be relied on as such. No responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by any member of KDL Law or by KDL Law as a whole.

Breaking news this morning following the leak last week – the government has published their Levelling Up White Paper – and the impact of matters contained within could shake up the private rented sector and have far reaching implications on landlords and tenants alike.

What is a White Paper?

A “White Paper” is a policy document published by the government which sets our their intentions for future legislation. White papers form the basis of discussion and consultation before the final bill(s) are put forward before government to be voted into law.

What is the purpose of the Levelling Up White Paper?

The purpose of this document is to bring about system change across both the Government and the country. The White Paper sets out the changes required, and how these will be implemented to “level up” the UK. The paper contains 12 national missions that are to be completed by 2030, and are quantifiable allowing them to be tested and measured.

How does this apply to landlords?

There are three main elements within the White Paper that will affect landlords: The introduction of a “Decent Homes Standard”, the introduction of a National Landlord Register and the abolition of the Section 21 Eviction Notice.

The Decent Homes Standard

Homes in the private rented sector will need a meet a mimumum standard known as the “Decent Homes Standard”. There is nothing new about this standard, and you can find information about it by clicking here. We are in support of this government move, as decent landlords will not be affected, only those who do not maintain their properties and protect their tenants.

The National Landlord Register

There is minimal information provided within the White Paper on this proposal so we will be tentatively waiting for further details to be released. There is likely to be a minimum standard or accreditation to join the register, or it may be that landlords can avoid registration by using a registered letting agent such as ourselves. If you would like more information about our services, please do get in touch.

The Abolition of the Section 21 Notice

The abolition of the Section 21 notice has been under discussion for a number of years, but its inclusion in the White Paper shows that the implementation is moving closer. The idea behind the abolition is to prevent landlords from evicting tenants with no formal reason – hence the Section 21 procedure is known as the “no fault eviction”.

Giving tenants more security should not be seen as a bad thing given the number of “rogue” landlords operating in the UK, however in our opinion, a sharp reform of the remaining eviction process “known as the “Section 8″ procedure” needs to be completed before the loss of the Section 21. At the very least, the process needs to be shortened and simplified, with additional grounds added and all grounds to be made mandatory. We simply cannot be placed in a position where landlords cannot regain possession of their property when there is a genuine requirement to do so.

What Happens Next?

According to Government officials, £4.8 billion has be commiteed to this project and its implementation although there are some doubts over the contents of the paper and the ambitiousness of the 12 national missions with regards to funding. The next step will be for the contents of the paper to be discussed and debated, until a draft bill is produced ready to be put forward before Government and eventually enacted into law.

As a landlord, you have several legal obligations under The Gas Safety (Installation and Use) Regulations 1998.These are:

1) Arrange an annual gas safety check to include all gas appliances and flues within the property.This must be carried out by a Gas Safe registered engineer.

2) Provide a copy of this report to your tenants within 28 days of the test, and to all new tenants moving into a property. Note: Under the Deregulation Act 2015 if this is not done you will not be able to serve an eviction notice to your tenants.

3) Maintain all gas appliances, flues and pipework, to include an annual service.

You are also required under the Health And Safety at Work Act 1974 to ensure the property is safe.

What happens if you don’t comply?

Non-compliance is a criminal office and the standard penalty is a £6000 fine (per appliance) and/or 6 months imprisonment. However, if there were to be a fatal incident due to lack of gas safety compliance a criminal charge as serious as manslaughter could be levied against the landlord and/or agent. Any buildings or contents insurance could also be invalidated.

The current regulations state that a gas certificate must be carried out on annual basis, and must not be allowed to expire. This can cause an issue if there is no availability for appointments meaning you potentially have time left on a certificate “wasted”. The government has therefore implemented the Gas Safety (Installation and Use) (Amendment) Regulations 2018 on 6th April 2018 which introduce more flexibility to the timing of the gas certificate, by using an “mot style” system whereby the certificate can be carried out within 2 months of the due date, but retain that original date going forwards.

For more information and to check if your engineer is gas safe registered you can visit the Gas Safe Register.

Under the Smoke and Carbon Monoxide Alarm (England) Regulations 2015, from 1st October 2015 landlords of rented property are required the make sure their property has:

1) At least one working and in date smoke alarm on each floor of the property

2) A working and in date CO alarm in any room with a solid fuel (wood, coal) burning appliance is installed

3) been checked at the start of tenancy to make sure all alarms are present, in date and in working order.

The law in England is inconsistent with the rest of the UK and only covers solid fuel burning appliances, Carbon Monoxide can also be emitted by gas burning appliances and therefore it is best practice to ensure there is an additional CO alarm in any room with a gas burning appliance (such as a gas cooker, fire or a boiler).

The Carbon Monoxide (Detection and Safety) Bill  2017 – 2019 is currently going through parliament to make this recommendation a law, which in our opinion is a fantastic idea. All our managed properties already comply with this recommendation.

Carbon Monoxide poisoning is known as the “silent killer” due to it being an odourless and colourless toxic gas. CO is produced when a fuel is not burnt properly, and can be produced from all gas, oil and solid fuel appliances, hence an annual service and annual safety test is very important to ensure appliances are operating correctly and safely.

Where should they be fitted?

A smoke alarm should be fitted according to manufacturers instructions but as a general guide:

1) On the ceiling, at least 30cm away from any wall or light fitting

2) Normally in a hallway where it can be heard throughout the house

A CO alarm should be fitted according to manufacturers instructions, but as a general guide:

1) At least 300mm from any wall (if ceiling mounted)

2) At least 150mm from any ceiling, door or window (if wall mounted

3) Between 1 and 3m from the potential source of CO (measured horizontally)

4) Not in an enclosed space (inside a cupboard for example)

5) Not where it could be obstructed

6) Not directly above a sink

7) Not near an extractor fan, air vent or similar opening

8) Not where the temperature could drop below -5 degrees or exceed 40 degrees.

Symptoms of CO Poisoning

Dull headache

Weakness

Dizziness

Nausea or vomiting

Shortness of breath

Confusion

Blurred vision

Loss of consciousness

IF YOU SUSPECT CO POISONING, LEAVE THE HOUSE IMMEDIATELY AND CALL 999.

The Homes (Fitness for Human Habitation) Bill has now made its journey through parliament and received Royal Assent, which means it is now a law. The bill makes it a requirement for a landlords to ensure that their property is “fit from human habitation” at the start of, and for the duration of the tenancy. This law will also apply to the communal areas within blocks of self contained units.

This new law amends the Landlord and Tenant Act 1984 and the Housing Act 2004 and gives the tenant stronger rights in terms of tackling a landlord who in unwilling to maintain or repair their property. It gives them a right to take their landlord to court t if the property does not comply with the Housing Health and Safety Rating System (HHSRS) and gives the court the facility to force the landlord to comply along with payment of damages to the tenant.

For those not aware of it, the HHSRS is a system used by local councils to identify risks within a property, a rate them in order of severity. Different risks are allocated a set number of points, and the final number of points dictates the “category” of hazard present – and the resulting action that must be taken.

The law is scheduled to come into force on the 20th March 2019 and will apply to all new tenancies created on or after this date. It will be rolled out to all tenancies on the 20th March 2020. It states that a property will be unfit for human habitation if there is a serious defect (Category 1 hazard) in any of the areas below. The Act states that “the house shall be regarded as unfit for human habitation if, and only if, it is so far defective in one or more of those matters that it is not reasonably suitable in that condition”

  • Repair
  • Stability
  • Freedom from damp
  • Internal arrangement
  • Natural lighting
  • Ventilation
  • Water supply
  • Drainage and sanitary conveniences; and
  • Facilities for preparation and cooking of food and for the disposal of waste water.

The landlord however, will not be responsible if the damage or issue has been caused by the tenant or an action of the tenant. There will also be some exemptions, for example:

  • Rebuild or reinstate a destroyed building
  • Put right unfitness the tenant is responsible for causing
  • Carry out works which are the responsibility of a superior landlord (freeholder), or for which they cannot obtain third-party consent

All of our managed properties are, and will always be maintained to a high standard so you can rest assured that as a client of SWR the implementation of this law will not affect you. The law should hopefully target those landlords who choose to ignore their obligations and exploit their tenants, however until we have case law to analyse, we cannot be sure of any unintended consequences for our own landlords who are always conscientious and take care of their properties and tenants.

Download more information on the HHSRS here.

Read the full bill here.

Unless you have been living without a TV, phone or radio, I expect you have now heard about the Tenant Fees Act 2019, aka the “Tenant Fee Ban” (TFB).

So, what is it?

In short terms, the TFB is a piece of legislation introduced by the government which came into force on 1st June 2019. It specifically prohibits landlords and agents taking any form of payment (or forcing tenants to contract with a third party) in order to obtain or continue an Assured Shorthold Tenancy Agreement, unless that payment is specifically permitted by the ban (a “permitted payment“). All other payments are known as “prohibited payments” and carry heavy penalties, as I will discuss later in this article.

The TFB applies to all AST’s and licences (not common law, company or high rent tenancies) granted on or after 1st June 2019 and all AST’s and licences from 1st June 2020.

What payments are permitted?

There are several, including:

Rent (but this must be kept at the same level, or higher, throughout the duration of the fixed term. If it is decreased, the additional amount during the months prior to the increase will be seen as a prohibited payment.

Security Deposit (This is now capped at 5 weeks rent, and not a penny over, regardless of circumstances i.e. pets. Deposit calculators are widely available online, and the the following calculation must be used: (Monthly rent x 12/52 x 5). This cap is increased to six weeks rent for properties with an annual rent of over £50,000.

Holding Deposit (there are many regulations around the acceptance of a holding deposit, which I may need to go into further detail on a separate post. However the main points are that it is capped at 1 weeks rent, and it must be returned to the tenant save for four explicitly stated sets of circumstances .)

Change of tenancy Charge (a charge can be made when the tenant requests a change to the tenancy, such as the addition of a permitted occupier, or the change of a rent date. This charge is capped at £50 including VAT).

Late Rent Charge (this is one is pretty laughable and likely not worth even thinking about. You cannot charge for late rents, chasing letters, visits. The only charge you can make is an interest charge of 3% over the BOE base rate, after the rent is more than 14 days late).

Replacement keys/security device (Self explanatory, but you can only charge the cost of the replacement key or device, not for your time.)

Early Termination (If the tenant would like to leave a contract early, you can charge to cover your costs. However, if you are not using an agent, you are not permitted to charge them for re-referencing the new replacement tenants. They are also expected to pay rent and utilities up until the day before a replacement tenant moves in).

Breach of tenancy (If the tenant breaches any part of the agreement, you can seek to recover your costs from them, either directly or through the security deposit).

What payments are prohibited?

Anything not listed above is prohibited.

What are the penalties for breaching the ban?

Luckily for us Bristol folk, the government helpfully decided to place the central UK enforcement authority for the Tenant Fees Act within Bristol city council. They are a team who will be able to enforce the ban through penalties, and make no mistake, after reading the government guidance written for enforcement authorities it is very clear that they are being pushed to enforce this legislation to the letter. The reasons for this may become clearer to you if you allow me explain a little further about the penalties for breaching the ban.

If you purposefully or accidentally take a prohibited payment and do not return it to the tenant within 28 days, if reported it is likely you will be given a penalty charge. Ignorance is sadly no excuse so it is important you are aware of your obligations.

Any breach would render a Section 21 eviction notice invalid, so you would not be able to regain possession of your property until the prohibited payment was returned.

First breach: Up to £5000 penalty charge per breach (note: if you charge one fee that includes several items i.e. referencing, check in, tenancy fee: this could easily be seen as multiple breaches which would each attract a penalty charge in its own right).

Second or subsequent breach within 5 years: Criminal offence, or a penalty charge of up to £30,000 as an alternative to prosecution, per breach.

Common Errors

There are many people that believe the TFB only applies to letting agents, however this could not be further from the truth. As a self-managing landlord, here are a couple of scenarios which could easily catch you out if you are not making sure you are fully up to date with your obligations.

  • Your tenant is on a six month AST which renews on the 1st August 2019. You currently hold six weeks deposit. At their request, you supply another six month agreement as you normally do, and as the deposit is held in a custodial scheme, no action is needed.

WRONG. Prior to signing the new fixed term agreement (and effectively creating a new tenancy, you MUST return the portion of the deposit that is over the five week deposit cap. If you do not do this, that money will become a prohibited payment and you will be in breach.

  • You are advertising your property to rent as no pets, but someone phones and offers to pay a separate payment as protection against pet damage. This is fine, because it technically isn’t part of the security deposit.

WRONG. You must not take any money over the five weeks rent as a security deposit. In this scenario, not only would you be in breach of the TFB, but you would also be in breach of the Tenancy Deposit Protection Legislation.

  • You are advertising your property to rent as no pets, but someone phones and offers to sign a contract that states they will have the property and carpets professionally cleaned and flea treated at the end of the tenancy. You agree to the tenancy on those terms.

WRONG. You must not make or allow the tenant to contract with a third party (that costs them money) as a condition of granting a tenancy. In this instance, the fact that they must pay for cleaning and flea treatment in order to have the tenancy would be a breach.

  • Your tenant calls you at 10pm to say they have locked themselves out as they have lost their keys. You visit the property to let them in and provide them with a spare, and they give you £20 for your trouble.

WRONG. You are not able to charge for your time when resolving issues like this. You are only able to charge them the cost of the key. Our advice in this situation would be to either ask them to come to you to collect the key, or for them to call a locksmith who they would need to pay directly.

As you can see, the TFB was created as a piece of legislation to protect tenants from unscrupulous landlords and letting agents. I am the first to acknowledge that historically there has been a huge amount of unfair treatment of tenants, particularly from city centre Letting Agents across the country. However, the way this legislation has been written goes above and beyond the job it was meant to do.

It is so convoluted and technical that it makes it difficult for the non-professional landlord to stay compliant without expert support. It is full of opportunities for mistakes, and this coupled with widespread ignorance around the true implications and requirements of the Act means I am expecting to see a large amount of prosecutions over the next few years.

That said, any piece of legislation is subject to interpretation and until we have case law coming through giving us better more conclusive guidance on how to interpret the Act, we all just need to keep our fingers crossed that doing our due diligence is enough to comply and ensure that we aren’t one of the unfortunate few who are involved in creating that case law that everyone else is awaiting to enable them to learn from.

As always, I hope this information was useful, and if you have any questions feel free to post them below. Please make a point of reading our disclaimer located on the privacy page of this website.

On the 13th January 2020 “The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020” were laid in parliament. There are still a few steps to go through, but the important dates you need to know are:

  1. All NEW and RENEWING tenancies (AST’s) must have a satisfactory fixed wire test (Domestic Electrical Installation Condition Report) in place before 1st July 2020.
  2. All current tenancies, regardless of start date or length, must have a satisfactory fixed wire test (Domestic Electrical Installation Condition Report) in place before 1st April 2021.

As much as I feel sorry that landlords have literally been peppered with incoming legislation over the past few years (meaning lots of added expenses) I think that we can agree that this particular legislation is not only necessary, but has been a long time coming.

Electrical safety is one of the most important things to consider when renting your property, and one of the biggest and most important steps you can take is a fixed wire test.

Ever since the initial announcement of The Housing and Planning Act in 2016, we always knew these mandatory tests would be coming, so have been working on a very slow roll-out across our properties over the past three years.

Now we have a formal date to work to, we will be increasing the speed of this roll-out and contacting all our landlords to ask them for their permission to proceed with the test. Due to the amount of properties involved, we have secured competitive rates with our contractors.

Should you wish to have your property tested, please do not hesitate to get in touch. We can arrange the test for the price of:

1-4 bedrooms £175 + VAT (£210)
4+ Bedrooms £195 + VAT (£234)

In July 2019 a report was published giving the recommendation that a recognised standard for “Property Agents” should be created and rolled out across England. The aim of this would be to raise standards across the sector, to ensure those working within it would be appropriately trained and qualified.

The report recommended the following:

1

All agencies operating a residential property business should be licensed and licensing should include a fit and proper person test for company directors.

2

All customer-facing staff employed within residential agency business should be licensed and adhere to a Code of Practice.

3

All customer-facing staff employed within residential agency business should hold a qualification at Level 3 or above.

4

All company directors and management agents should be qualified to a minimum of Level 4.

5

A new regulator to be appointed to oversee compliance with an overarching Code of Practice.

We will obviously keep you updated when we hear of any progress!

There is a lot of discussion around asbestos, particularly in recent years where Health & Safety has been pushed to the forefront of our minds – but what actually IS asbestos and why do we, as property managers and landlords, need to know about it?

All landlords and property managers must abide by the Health and Safety at Work Act 1974, hence they must be aware of anything that may impact the general health and safety of their tenants.

Asbestos was known as the “Magic Mineral” for many years given its versatility and properties as a construction product. It was used in many ways such as insulation, fire proofing, cladding, even roofing and floor tiles. It wasn’t until much later that the effects of asbestos on those who produced, shipped and used it became apparent. Unfortunately by this point, asbestos was so widely distributed and used that it was impossible to trace it and remove it from those buildings that had included it.

So WHY is Asbestos dangerous?

Asbestos is made of fibres, as you will see below. When the Asbestos is “friable”, meaning the edges are damaged or worn, these fibres can be released into the air, and inhaled or ingested. Once ingested or inhaled, they are difficult (if not impossible) to remove, and eventually cause disease, such as lung cancer or conditions known as Asbestosis and Mesothelioma.

What does Asbestos look like?

To keep things simple, there were three main types of Asbestos in use in this country – these are nicknamed after their appearance: “White Asbestos” (Chrysotile), “Blue Asbestos” (Crocidolite) and “Brown Asbestos” (Amosite).

Image courtesy of: https://www.merryhillenvirotec.com/types-of-asbestos/

The use of Blue and Brown Asbestos was banned in the UK in 1985 but large amounts remain. Blue is widely seen as the most dangerous type of asbestos due to its structure – the fibres are short and spiky, which cause the maximum damage to the lungs.
Blue asbestos was often used for products such as spray on pipe lagging, insulation or asbestos cement.

Image Courtesty of: https://www.ad-asbestosremoval.co.uk/

Just as a matter of interest, a lot of people think that the visible fibres of asbestos are what cause the problem. In fact, it is actually the fibres you can’t see with the naked eye that are more troublesome, as shown by this micrograph:

Similar to Blue asbestos, Brown asbestos was mostly used for cement sheets and insulation.

The most common type of asbestos, white, was banned in 1999 which means as a landlord or property manager you should be aware that it may be present in most properties built or converted before 2000. White asbestos is commonly found in areas like artex ceilings, insulation, cement, soffits, piping, fireproofing and ceilings but is so widespread the uses of this type of asbestos would take too long to thoroughly list.

Image courtesy of: https://job-prices.co.uk/asbestos-in-the-home/
Image courtesy of: https://job-prices.co.uk/asbestos-in-the-home/
Image courtesy of: https://job-prices.co.uk/asbestos-in-the-home/

How can I tell it is asbestos?

To only way to confirm the prescence of asbestos is by testing it. There are many companies that will offer a sampling and testing service, often with a 24 hour turnaround. They will take a look at the sample under a microscope to identify the type of fibres it contains, and therefore confirm the presence of asbestos in the sample.

What do I do if I have asbestos?

The first step in the sucessful management of asbestos is the identification of the location and type of asbestos, and the assessment of the current condition.
We would always recommend using a professional company to carry out an “Asbestos Management Survey” and if necessary, an “Asbestos Management Plan and Asbestos Register”.
This survey will review the property non-invasively to identify the location of asbestos on site, as well as giving recommendations for its management and/or removal.
Should there be extensive works being carried out at the property, it is important to take this further and arrange for a “Refurbishment/Demolition Survey” which is much more invasive.

Both types of survey will provide information on how to manage the asbestos, which is likely to be either complete removal, encapsulation (covering to prevent the release of fibres) or regular checking of the condition.

If you would like further information, the Health and Safety Executive website is a fantastic resource, in particular the booklet titled “Asbestos Essentials“.

References:

https://www.hse.gov.uk/asbestos/

https://ibasecretariat.org/lka-paper-asbestos-from-magic-mineral-to-killer-dust-apr-28-2013.pdf

https://ehs.oregonstate.edu/asb-when

https://ehs.oregonstate.edu/asb-when

Guidance has now been produced by the government relating to the upcoming Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020. Originally included in the Housing and Planning Act of 2016, this is now a standalone piece of legislation. We have been aware that this particular piece of legislation was coming for several years and it is actually very welcome. Most landlords are very keen to ensure their properties are safe, but there are the minority that are not.

There will now be a legal obligation and not just a moral obligation to ensure that your rental property is safe and to the standards contained in the 18th edition of the ‘Wiring Regulations’, which are published as British Standard 7671.

So, what do the regulations mean for landlords?

If you love reading legislation, you can review the actual legislative document by clicking here. If not, read on to read a summarised version of what is required.

  1. For all new tenancies starting on or after 1st July 2020, the landlord must obtain, and provide to the tenant within 28 days, a satisfactory DEICR (Domestic Electrical Installation Condition Report) – also known as a “Fixed Wire Test”.
  2. This requirement will be rolled out to ALL tenancies from 1st April 2021.
  3. The certificate must be carried out by a qualified and competent electrician. Further information relating to qualification of electricians is available by clicking here to visit the NICIEC website.
  4. The certificate will last for 5 years, and therefore must be repeated prior to expiry.
  5. Where remedial work is required, this must be carried out within 28 days, or sooner if deemed necessary by the qualified electrician carrying out the test.
  6. The certificate must be provided to the tenant prior to moving into the property, similar to the Gas Safety Certificate.
  7. You must retain a copy of the report to provide to the electrician prior to the next test.

What parts of the property are included under the test?

The ‘fixed’ electrical areas in the property, starting with the RCD board (also known as a fuse board) and including the wiring, the plug sockets, the light fittings and any hard wired items such as showers, extractor fans or ovens.

How is remedial work classified?

Within the report, remedial work is classified into the following groups:

C1 = Danger present. Risk of injury. The electrical inspector may make any C1 hazards safe before leaving the property.

C2 = Potentially dangerous.

FI: Further investigation required without delay.

C3 = Improvement recommended. Further remedial work is not required for the report to be deemed satisfactory.

A test with any C1, C2 or FI observations will be deemed unsatisfactory.

When the remedial works are complete, the landlord must supply written confirmation to the tenant within 28 days.

What type of properties does the new law apply to?

Any property where the tenant lives as their primary residence will be covered by the legislation. This includes agreements such as Assured Shorthold Tenancies (AST’s), licences to occupy and company lets.

Social housing, lodgers, those on a long lease of 7 years or more, student halls of residence, hostels and refuges, care homes, hospitals and hospices, and other accommodation relating to healthcare provisions are not included.

If you have a property that was built in the last 5 years (or completely re-wired) it should have a current Electrical Installation Certificate (EIC). This will last for 5 years, at which point it must be re-tested. However, you must make sure that the EIC includes all installations within the property, not just one area.

What happens if remedial works are not carried out?

The local enforcement authority may serve upon the landlord a remedial enforcement notice legally requiring them to carry out remedial works. If they do not comply with the notice, the enforcement authority may proceed with the work and charge the landlord for the works, and their costs in administering them.

In addition to this, a fine of up to £30,000 may be given to the landlord for the breach. Should a tenant be injured or killed due to an uncertified and faulty electric installation, the landlord may find criminal charges are applied against them.

What about tenancy renewals?

If your tenancy expires after the 1st July 2020 and you provide the tenant with a new tenancy agreement (also known as a fixed term renewal or extension), just must ensure that you have a certificate in place and it is provided to the tenant prior to this document being signed.

If your tenancy expires after 1st July 2020 and it turns into a contractual periodic tenancy (it is written into the agreement that after the fixed term, the agreement will turn into a monthly tenancy) you do not need a certificate until 1st April 2021, however, if you do not have one, it is advisable to get one as soon as possible.

If your tenancy expires after 1st July 2020 and it turns into a statutory periodic tenancy (nothing is written into the agreement), you will need a certificate in place and provided to the tenant prior to the end of the current tenancy. This is because the change of tenancy type from fixed term to statutory periodic constitutes a “new tenancy” in law.

For further information or help with this new legislative requirement, please do not hesistate to get in touch with us. We can arrange for you to have a DEICR carried out by local, trusted electricians at the following cost:

1-4 Bedrooms: £210 including VAT

4+ Bedrooms: £234 including VAT

Communal Areas of Leasehold Apartments (Landlord Supply): By Quote

Flats, Houses & Homes to rent in Bristol - South West Relo

SWR can help you find a property that is best for you - whether you are looking for Homes, houses, or flats to rent in Bristol.

For flats, houses &  homes to rent, Bristol has a great selection. SWR is a well-established, professional letting agency with the most extensive selection of quality properties to rent in Bristol.

Finding a place to live can be a stressful task, especially in a big city like Bristol. SWR can help you find out which property is the best for you whether you are looking for houses to rent Bristol or flats to rent Bristol we are here to offer the most comprehensive and personalised and “stress-free” services. SWR is here to listen to your requirements and we take pride in providing outstanding customer service. We want to help you find your next home and we’ll guide you through the process so that the experience is enjoyable and exciting.